Metals, Steel, Aluminum & Coil Processing worked example

Coil Storage Cost at 72% billable share of inventory: a worked example

This worked example runs the coil storage cost numbers for a tougher week than the baseline: 72% billable share of inventory instead of the typical 100%. Estimate coil storage cost from coil-months stored, the storage rate per coil-month, the billable share, and a fixed handling cost.

The inputs for this scenario

  • Coil-months in storage: 120 coil-months (held at the documented default)
  • Warehouse rate per coil-month: 8 $ / coil-month (held at the documented default)
  • Billable share of inventory: 72 % (the input this scenario stresses; the baseline uses 100)
  • Fixed handling and crane cost: 200 $ (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Variable storage cost = coil-months stored × storage rate × billable share.
  • Total storage cost works out to 891 $ at these inputs, and this is the headline figure for the scenario.
  • Cost per coil-month works out to 7.43 $ / piece at these inputs.
  • Variable storage cost works out to 691 $ at these inputs.
  • Fixed handling cost works out to 200 $ at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where billable share of inventory sits at 100% and the headline result is 1,160 $, this scenario comes in 23.17% below the baseline at 891 $.
  • Use it to invoice toll-storage customers, to model inventory carrying cost, or to justify reducing on-hand coil. A result at this level usually justifies acting on the stressed input before touching anything else, because every other figure in the table is downstream of it.

Results at a glance

  • Total storage cost: 891 $ (headline result)
  • Cost per coil-month: 7.43 $ / piece
  • Variable storage cost: 691 $
  • Fixed handling cost: 200 $

Run it with your numbers

  • To rerun this with your own numbers, open the live Coil Storage Cost calculator, set billable share of inventory to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.